The company said the bonuses would be $750 in cash and $500 in 401(k) contributions. It added that it would "further sweeten the benefit" by giving allof its 1,300 employees a year's worth of free baked products.

Each week for a year Hostess said will select a "product of the week" and provide a multi-pack to every employee.

Many companies, including American Airlines, Disney and AT&T, have given bonuses to employees citing the new tax plan, which lowers the tax rate for corporations. But the bonuses represent a fraction of how much money the companies are actually saving.

Hostess Brands, based in Kansas City, Missouri, is a century-old company that makes famous snacks like Twinkies, CupCakes and Ding Dongs.